Integrating Case $11-2($Static$)$ Errors; change in estimate; change in principle; inventory, patent, and equipment $[$LO$11-5,11-6,11-7]$

Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the year ended December $31,2024,$ reported the following amounts and subtotals $($$ in millions$)$:

$$AssetsLiabilitiesShareholders$$ EquityNet IncomeExpenses$2023$$ $640$$ $330$$ $310$$ $210$$ $1502024$$ $820$$ $400$$ $420$$ $230$$ $175$

In $2025,$ the following situations occurred or came to light:

Internal auditors discovered that ending inventories reported in the financial statements the two previous years were misstated due to faulty internal controls. The errors were in the following amounts:

$2023$ inventoryOverstated by $$12$ million$2024$ inventoryUnderstated by $$10$ million

A patent costing $$18$ million at the beginning of $2023,$ expected to benefit operations for a total of six years, has not been amortized since acquired.

Whaley$$s conveyer equipment has been depreciated by the sum$-$of$-$the$-$years$-$digits $($SYD$)$ method since constructed at the beginning of $2023$ at a cost of $$30$ million. It has an expected useful life of five years and no expected residual value. At the beginning of $2025,$ Whaley decided to switch to straight$-$line depreciation.

Required:

For each situation:

Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for $2025$ related to the situation described. $($Ignore tax effects.$)$

Determine the amounts to be reported for each of the items shown above from the $2023$ and $2024$ financial statements when those amounts are reported again in the $2025,2024,$ and $2023$ comparative financial statements.